You are here: Home - News -

Little support for buy-to-let legislation

by: Stephen Quigley
  • 10/08/2009
  • 0
A report from the National Association of Commercial Finance Brokers (NACFB) has dismissed the idea of buy-to-let regulation as proposed by research from Exact Mortgage Experts, arguing that such a change would not protect investors or negate risk.

Research from Exact which was carried out on 549 intermediaries last month showed a majority (54%) believe the FSA should regulate the buy-to-let market as arrears are high and tenants have no protection if properties go into possession.

However, Nikki Cann, associate director of the NACFB, said regulation would not protect investors from entering the sector and falling into arrears.

She added: “Investors could get a false sense of security that they are protected from the risks of a volatile market. It seems a shame to spend millions on a magic bullet that we doubt will hit its target.”

Alan Cleary, managing director of Exact, said the lack of regulation ultimately meant tenants were unprotected if properties went into repossession.

He commented: “The advice giving process needs regulation and lenders also have to apply more stringent responsibility tests to properties. Many amateur landlords jumped into the buy-to-let market during the boom. In the downturn, their tenants need some form of protection as they could lose their home.”

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
SHIP safeguards to remain

Industry figures have warned that removing Safe Home Income Plans (SHIP) safeguards from equity release products would be a major...

Close